Customer Satisfaction Theory

"Well, there goes another satisfied customer", I used to hear from the manager of a radio rentals shop I used to work in during student vacations some twenty five years ago, and we all would snigger. Clearly there was not much commitment to customer satisfaction in that organisation; but what exactly is the purpose of satisfying the customer when such a commitment does exist?

The answer to this question is provided by "The Customer Service Profit Chain" modeled below. The theory behind this diagram encapsulates all you will need to know about how customer satisfaction, and then customer loyalty, are linked to the quality of customer service and ultimately to you own firm's profitability.

In short - keeping the customers satisfied translates to benefits in your own bottom line!